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Student Loan Refinancing Companies | Which Can Get You Out of Debt

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Are you looking for student loan refinancing companies?

Refinancing could be a smart move when interest rates for federal loans go up in July.

Choose from some of the best student loan refinancing companies in the country.

Find the right one by comparing interest rates, monthly payments, and other loan terms.

Student Loan Refinancing Companies To Choose From

1. SoFi

Social Finance, Inc. (SoFi) was the first company to refinance private and federal student loans in the U.S. in 2011. SoFi has 300,000 members and has funded $20 billion in loans to date.

  • Eligible loan balance: At least $5,000
  • Interest rates: As low as 2.615% for variable rates and 3.350% for fixed rates
  • Repayment terms: 5, 7, 10, 15, and 20 years
  • Income requirement: None specified but borrower must be employed or will begin employment within the next 90 days
  • Education: Graduate of a bachelor’s degree or higher
  • Average Credit Score: 650
  • Pros: SoFi offers one-on-one consultation with career coaches. Participants in SoFi’s Entrepreneur Program can also have payments deferred for six months.
  • Cons: Co-signers will not be released from the loan contract until the full amount is paid. SoFi loan refinance options are also not available in Nevada.

(NOTE: Wondering if you should consolidate your private student loans? Go into the decision-making process ultra-prepared by checking out the 6 Things To Know Before Consolidating Private Student Loans. Learn more and get the free guide HERE.)

2. Citizens Bank

Citizen’s Bank is one of the 20 largest banks in the U.S. The bank, based in Providence, Rhode Island, offers rates that are much competitive compared to non-bank student loan refinancing companies.

  • Eligible loan balance: $10,000 to $150,000
  • Interest rates: As low as 2.58% for variable rates and 4.74% for fixed rates
  • Repayment terms: 5, 10, 15, and 20 years
  • Income requirement: $24,000 annually
  • Education: Permits the refinancing of the loans of those who did not graduate
  • Average Credit Score: 660
  • Pros: Co-signer release is available.
  • Cons: Interest rates are not competitive.

Student Loan Refinancing Companies

3. CommonBond

CommonBond, an online lending company, with a strong Social Promise. For every loan the company funds, it also finances the education of another child in need.

  • Eligible loan balance: $5,000 to $500,000
  • Interest rates: 3.35% to 6.74% for fixed rates; 2.61% to 6.54% for variable rates, and 3.82% to 6.37% for hybrid rates
  • Repayment terms: 5, 7, 10, 15, and 20 years
  • Income requirement: None
  • Education: Graduate of a bachelor’s degree or higher
  • Average Credit Score: 660
  • Pros: CommonBond allows co-signer release after 36 consecutive monthly payments. It also lets borrowers refinance the federal PLUS loans taken out by their parents.
  • Cons: CommonBond services are not available in Idaho, Louisiana, Mississippi, Nevada, South Dakota and Vermont.

4. ELFI

Educational Loan Finance (ELFI) is a student loan program of SouthEast Bank, based in Tennessee. ELFI serves students from 48 states, excluding Arizona and Wisconsin.

  • Eligible loan balance: $15,000 to 250,000
  • Interest rates: As low as 2.10% for variable rates and 3.35% for fixed rates
  • Repayment terms: 5, 7, 10, 15, and 20 years
  • Income requirement: $35,000 annually
  • Education: Graduate of a bachelor’s degree or higher from an approved school
  • Average Credit Score: 680
  • Pros: ELFI offers one of the lowest interest rates among student loan refinancing companies.
  • Cons: ELFI does not have a clause for co-signer release.

5. College Ave Student Loans

College Ave Student Loans began only in 2014 but is now one of the leading private student loan lenders in the U.S. College Ave simplified the loan application process. It eliminated the need for a statement showing how much is left to be paid on the loan. College Ave retrieves that information from the borrower’s credit report.

  • Eligible loan balance: At least $5,000
  • Interest rates: As low as 3.88% for variable rates and 4.65% for fixed rates
  • Repayment terms: 8, 10, 12, 15 yrs
  • Income requirement: None specified but it must be around double the amount of the borrower’s debt
  • Education: Undergraduates may refinance their student debt with the help of a co-signer
  • Average Credit Score: 600+
  • Pros: College Ave offers low interest rates plus  0.25% deduction when borrowers set up automatic payments.
  • Cons: Not many reviews are available about the company, one of the newest in the industry.

(NOTE: Wondering if you should consolidate your private student loans? Go into the decision-making process ultra-prepared by checking out the 6 Things To Know Before Consolidating Private Student Loans. Learn more and get the free guide HERE.)

6. Earnest

Earnest Operations was incorporated in 2013 in San Francisco, California. The company uses data science and other technology to create lending solutions.

  • Eligible loan balance: $5,000 to $500,000
  • Interest rates: 3.37% to 6.49% for fixed rates; 2.80% to 6.28% for variable rates
  • Repayment terms: 5, 10, 15, and 20 yrs
  • Income requirement: None
  • Education: Graduates
  • Average Credit Score: None required
  • Pros: Earnest practices so-called “non-traditional underwriting.” It looks beyond borrowers’ credit scores, income levels, or present debt. It also considers education and employment histories.
  • Cons: Some feel uncomfortable with Earnest’s data-driven underwriting system. The company requires borrowers to connect their accounts (online banking, investment and retirement) to the Earnest system.

7. LendKey

LendKey is an online platform for the refinancing of both federal and private student loans. Students get to choose from 300 community banks and credit unions.

  • Eligible loan balance: $7,500 to $175,000
  • Interest rates: As low as 2.52% for variable rates and 3.25% for fixed rates
  • Repayment terms: 5, 7, 10, 15 years
  • Income requirement: $24,000
  • Education: Eligibility depends on the company that the borrower chooses to work with
  • Average Credit Score: 660
  • Pros: LendKey’s partner community banks and credit unions provide auto and home loans. By choosing a LendKey partner, you will gain access to these additional services.
  • Cons: Borrowers may not have access to all the lenders under the LendKey system.

Higher Rates for Federal Student Loans

New loans released from July 1, 2017 to June 30, 2018 will carry a 4.45% interest for undergraduates.

The current rate stands only at 3.76 percent.

Higher interest rates mean more money coming out of your pocket to pay for student loans.

However, Forbes.com reported that the interest hike does not cover federal student loans taken out in the last decade.

Want to refinance your student loans? Check out this video from CNBC:

Many private student loan refinancing companies are eager to help you settle your loans.

Choose the company that provides the best deal for you.

Go for lower monthly payments, cosigner release option, and flexible repayment terms.

However, be careful also in choosing a loan refinancing company.

A CNBC report warned that some lenders are facing lawsuits and enforcement actions.

Have you ever partnered with a student loan refinancing company? How did it go? Share your thoughts in the comments below.

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